Text of Q&A. They spelled JJ's name wrong in the last question.
Q: What are the problems with the Lipangue deal? Where is our money? Tell us what is going on? Are we still NDA bound?
A: Again, Medinah Mining Chile has the lead in all negotiations with Amarant Mining Ltd., related to the 1,508 Altos de Lipangue claims. Medinah Minerals, Inc. is in a subordinate position, and not a signatory as to the Purchase and Sale Agreement, among parties, dated July 10, 2012. Medinah Mining Chile, is under a very strict Non-Disclosure Agreement. Medinah Minerals, Inc., as an affiliate, is also bound by the identical NDA terms of the signed Purchase and Sale Agreement. Although we work closely together with Medinah Mining, Chile, they hold negotiating and signing power on the contract. At this time we are informed that all terms and conditions of the contract are still in full force and effect and proceeding.
Q: Why hasn't the LDM mining operation started cash flow for our announced production percentage? Can't Senor Qujano ever get things done? Promises, promises, promises, but never any results.
A: Many years ago learned professionals felt that the Las dos Marias claims could possibly be economically viable, but commodity prices were very low. As metals economics changed a review of Mining Engineer and Professional Geologist Paul L. Jones' viewpoints of drifting an adit or sinking an exploratory shaft gained merit. Several suitors stepped up over the years with many promises and monetary intentions, but failed to provide any risk funds. Late in 2012, financiers did put up non-collateralized exploratory dollars to undertake a serious level of risk. Expenditures for road work, equipment, housing, manpower, maintenance costs, explosives, permits, etc., were undertaken by the financiers. Through pure chance discoveries were made while clearing a base camp and far away from the intended intersections of targets DD-001 and DD-002. These initial finds at Los dos Marias have far exceeded expectations. Further, these discoveries gave rise to the potential economic viability of the entire Altos de Lipangue plateau. In early 2013, Compañia Minera LDM Chile began stockpiling large amounts of ore while simultaneously applying for an Exploitation permit to begin transporting the ore for processing at the Chilean owned Enami (Empresa Nacional de Mineria) refinery. Recently, the Exploitation permit was granted and LDM Chile will begin transportation of stockpiled ore next week. To clear up any and all misunderstanding, Medinah Minerals, Inc. was the recipient of a "free" and "gratuitous" 30% holding of all net production profits at the Compañia Minera LDM Chile operation.
Medinah Minerals, Inc. did not have any financial obligations concerning the receipt of net profits interest and we were not required to provide any capital outlay or share consideration, initially or in the future. It should be noted that Medinah Minerals, Inc. has received several credible inquiries regarding interest in purchasing all or any portion of its net 30% production profit holdings from the Compañia Minera LDM Chile mining operation.
Q: The Ciclon claims purchase does not seem to be that good of a deal. Will you elaborate on why the company spent 20,000,000 shares for the 20% ownership. What kind of return can we expect?
A: Medinah Minerals, Inc. carefully looked at the Ciclon I & II investment as potentially a highly profitable long-range prospect. The 20% ownership share acquisition was completed with a risk/reward viewpoint looking forward over a 20+ year period. Your company has reviewed numerous mining projects over the years and have passed on most. Medinah Minerals, Inc. deemed the Ciclon I & II acquisitions as prudent and viewed their potential as economically viable and a necessary opportunity cost. The total mineralization content of the Ciclon I & II will be revealed over time. Medinah now has participation regarding the previously reported Purchase Offer, as signed with an Australian company, Serena Minerals.
Q: Are there any further developments with our Jorta acquisition? Previously it was reported that Mr. Quijano was going to be on the Discovery Channel television show called Gold Rush, but where is the contract disclosure and money.
A: Medinah Minerals, Inc. purchased a 20% percent ownership interest in the JOTA group of claims for 20,000,000 shares. In late 2012, Señor Quijano was contacted by the producers of the Discovery Channel show, "Gold Rush". Señor Quijano then accompanied the Gold Rush producers and stars of the show in their review of several potential Chilean mining sites via helicopter aerial views. After reviewing the JOTA claims by ground inspection, the Gold Rush team focused in on the JOTA claims as their "primary target" for Gold Rush South America filming. As of this writing, negotiations are still pending with the Discovery Channel for filming concessions on the JOTA property site. The JOTA claims have also been visited by two major mining companies, and participation offers are anticipated.
Q: Why don't we fire Senor Quihano and replace him with people who can complete a deal?
A: Without Señor Quijano we would not be in business. All of Medinah Minerals, Inc. Company claims ownership percentages are in the mineral rich country of Chile. Going back to 2002-2005, previous Board members and Company Management of the Medinah had lost all of our claims due to non-performance of obligations. Ambassadors were then sent to Chile to meet with Señor Quijano to try and resurrect our ownership standing in numerous claims. Over a period of years, and by curing past shortcomings, Señor Quijano allowed Medinah to reinvigorate its ownership positions. Throughout ensuing years of very tumultuous economic difficulties and untold setbacks, Señor Quijano has continued to act in the "best interest" capacity for the benefit of all. Medinah Minerals, Inc. has been afforded the opportunity to participate in several highly valued property acquisitions in Chile. His part in the "free" concession of production reward for Medinah Minerals, Inc. at the current LDM Chile mining project is just one example of his caring nature for Medinah shareholders.
